TIDMGMS
RNS Number : 2741O
Gulf Marine Services PLC
29 May 2020
FOR IMMEDIATE RELEASE 29 May 2020
Gulf Marine Services PLC
Supply Chain & Logistics Framework Agreement
signed with Zakher Marine International to Target Operating
Costs
Gulf Marine Services PLC ("GMS" or the "Company") announces that
it has entered into a Framework Agreement (the "Agreement") with
Zakher Marine International ("ZMI"), a leading privately-owned
operator of self-propelled SESVs in the Middle East. We have agreed
to identify mutually beneficial cost-saving opportunities and
improve our operational availability for the benefit of our
customers using the combined scale of both self-propelled SESV
fleets.
The Agreement lays out the principle areas of potential
co-operation, comprising:
-- Procurement;
-- Logistics;
-- Maintenance, Classification and Repair; and
-- Employment and Training of Offshore Crew.
GMS and ZMI have agreed to establish joint teams and protocols
to identify ways to pool resources, combine functions, and leverage
combined purchasing power in order to reduce costs.
Both companies operate a similar number of modern exclusively
self-propelled SESV vessels, sharing many key components, allowing
for multiple opportunities to leverage the combined scale in key
areas to reduce third-party spend, while maintaining operational
and service excellence.
Our intention is to pass a portion of the savings on to our
customers whilst also strengthening our margins. This will increase
our ability to compete more effectively and will underpin each
business in continuing to meet the needs of all stakeholders in
what remains a highly competitive marketplace. Most of the cost
benefits are expected to flow through in 2021 and beyond.
GMS and ZMI will continue to operate and compete as independent
commercial entities in accordance with applicable laws, regulations
and their respective contractual obligations.
Tim Summers, Executive Chairman, said
"GMS has made substantial progress on cost management over the
last twelve months. Accretive gains will continue, but this
strategic move offers genuinely substantive progress. Under this
Agreement we will work with ZMI to explore leveraging the combined
scale of our respective supply chains, in order to lower costs and
maintain higher operational availability and uptime for our
customers."
Zakher Marine International (ZMI) are a logical choice of
partner for GMS as they have the only exclusively self-propelled
SESV fleet that is comparable to GMS in age, size and
specification. ZMI operates in all of our key markets in the Middle
East, and is headquartered, as we are, in Abu Dhabi.
Enquiries:
GMS
Tim Summers, Executive Chairman
Stephen Kersley, Chief Financial
Officer +44 (0) 207 603
Tony Hunter, Company Secretary 1515
Brunswick (PR Adviser to GMS) +44 (0) 20 7404
Patrick Handley - UK 5959
Will Medvei - UK +971 (0) 50 600
Jade Mamarbachi - UAE 3829
------------------
The person responsible for arranging for the release of this
announcement on behalf of GMS is Tony Hunter, Company
Secretary.
ABOUT GMS
GMS, a company listed on the London Stock Exchange, was founded
in Abu Dhabi in 1977 and has become a world-leading provider of
advanced self-propelled self-elevating support vessels (SESVs). The
fleet serves the oil, gas and renewable energy industries from its
offices in the United Arab Emirates, Saudi Arabia and the United
Kingdom. The Group's assets are capable of serving clients'
requirements across the globe, including those in the Middle East,
South East Asia, West Africa, North America, the Gulf of Mexico and
Europe.
The GMS fleet of 13 SESVs is amongst the youngest in the
industry, with an average age of eight years. The vessels support
GMS's clients in a broad range of offshore oil and gas platform
refurbishment and maintenance activities, well intervention work
and offshore wind turbine maintenance work (which are opex-led
activities), as well as offshore oil and gas platform installation
and decommissioning and offshore wind turbine installation (which
are capex-led activities).
The SESVs are categorised by size - K-Class (Small), S-Class
(Mid) and E-Class (Large) - with these capable of operating in
water depths of 45m to 80m depending on leg length. The vessels are
four-legged and are self-propelled, which means they do not require
tugs or similar support vessels for moves between locations in the
field; this makes them significantly more cost-effective and
time-efficient than conventional offshore support vessels without
self-propulsion. They have a large deck space, crane capacity and
accommodation facilities (for up to 300 people) that can be adapted
to the requirements of the Group's clients.
The Company's Legal Entity Identifier is
213800IGS2QE89SAJF77.
ABOUT ZAKHER MARINE INTERNATIONAL
Zakher Marine International provides services to the Offshore
Oil and Gas Industries and Offshore Marine Construction Companies
and is clearly focused on client satisfaction and retention.
The Company was established in Abu Dhabi in 1984 where the Head
Office remains. ZMI currently operate over 35 offshore support
vessels including 16 self-propelled SESV barges.
The management of Zakher Marine International are committed to
provide safe and healthy working conditions for our employees and
client personnel based on board our vessels. Our aim is to sustain
safe, environmentally friendly operating practices that comply with
applicable national and international codes and regulations,
relevant standards, guidelines and client requirements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRFLFVEEDITFII
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